What If you could get market linked gains on your money when the market is positive and you didn’t lose money when the market was negative?
You might think that is a mythical statement. Almost like a unicorn is a mythical creature. Well hold on to your shorts because there is a financial product that offers just those kinds of benefits. It is an Indexed Annuity.
It offers gains linked to the performance of the market and protects you when the market goes down.
What is this Indexed Annuity and is it new?
You may be shocked to learn this financial product has been available for many years. It is often misunderstood and often lumped in with other financial products that have had a bad reputation. However, in recent years it has been gaining traction among savvy financial professionals.
The term annuity has been giving it some bad press though. The problem is most people don’t realize there are several types of annuities available. The media says that Annuities are a bad and risky investment but they aren’t talking about these Indexed annuities they are often referring to what is known as a variable annuity. Unlike variable annuities these newer Indexed annuities offer protection from market losses and even come with interest rate guarantees.
In an Indexed annuity you get credited gains to your account value when the market is positive. When the market is negative you don’t lose any of the money you have gained in the past. Instead, you just get credited with a zero for the negative period of time. When the market goes back up you get credited positive gains again.
It really is a unique option for those who don’t like the roller coaster of ups and downs in the market. There are some trade-offs, however. In return for protection against market down turns you are capped on market gains. That means when the market is up you are credited interest up to a specified rate and when the market is down you don’t lose any gains. What you have to determine is whether you are willing to give up a percentage of the gain to protect you from future losses.
If you are looking for a financial product that can help you sleep easy at night knowing that your money has guaranteed growth potential and guarantees against market losses, perhaps an Indexed annuity is right for you. I would recommend you find a good financial planner to assist you with these products. There are many variations of these Indexed annuities available on the market and finding the best one without assistance from a knowledgeable professional could prove to be troublesome. You should do your homework on the features and benefits which make the most sense for your own financial goals.